Gold Retreats After Trump Pushes Iran Deadline to April 6

Key Takeaways

• Gold reached $4,475 per ounce during Friday trading before retreating to the $4,408–$4,417 range
• President Trump pushed back his Iran energy facility strike deadline to April 6, citing productive discussions
• Iranian officials publicly rejected claims that negotiations with Washington are underway
• The precious metal has declined over 15% since the Iran-Israel conflict intensified nearly a month ago
• Turkey’s central bank offloaded and exchanged approximately 60 tons of gold valued at more than $8 billion within a two-week period

Precious metals experienced significant volatility during Friday’s Asian session, with gold surging approximately 2% before surrendering a portion of those advances as the day progressed. By mid-morning in London, spot gold was trading higher by roughly 0.9% at $4,417 per ounce. Futures contracts for the yellow metal similarly advanced, posting gains of about 0.8% to reach $4,442.

Notwithstanding Friday’s positive performance, gold remained positioned for a weekly decline of approximately 1.7%.

The price movements followed President Donald Trump’s decision to postpone his ultimatum to Iran regarding the reopening of the Strait of Hormuz. Trump had initially warned of strikes against Iranian energy infrastructure if the critical waterway remained blocked. After moving the deadline to Friday, he announced Thursday that it would be extended once more to April 6.

Iranian authorities publicly refuted any suggestion that negotiations with the United States are currently taking place.

Understanding Gold’s Weakness During the Conflict

Gold has experienced a decline exceeding 15% since the Iran-Israel military confrontation commenced approximately four weeks ago. This represents a substantial downturn for an asset traditionally regarded as a refuge during periods of geopolitical turmoil.

The primary driver is crude oil. The virtual blockade of the Strait of Hormuz has propelled oil prices significantly upward. Roughly 20% of global petroleum supplies transit through this strategic passage. Elevated oil prices fuel inflation concerns, prompting investors to anticipate that central banks will maintain elevated interest rates for extended periods. Gold, which generates no income, typically underperforms in environments characterized by high borrowing costs.

Additionally, gold achieved record valuations near its January peaks, and market observers suggest those elevated levels may have triggered substantial profit-taking activity.

The greenback has also strengthened. The US Dollar Index registered a modest gain Friday, trading around 99.99. A robust dollar increases the cost of gold for international buyers using alternative currencies, potentially dampening demand.

Central Bank Liquidation Intensifies Downward Pressure

Turkey’s central bank divested and exchanged roughly 60 tons of gold during a two-week timeframe. This transaction represents more than $8 billion in precious metal value.

Central bank accumulation had served as one of the principal catalysts behind gold’s appreciation over the previous two years. Liquidation by a significant central bank introduces additional downward momentum to the marketplace.

Silver remained largely unchanged Friday at $68.11 per ounce. Both platinum and palladium posted modest gains.

Iran and Israel continued exchanging missile strikes on Friday. Tehran additionally launched attacks against multiple Gulf region nations during Friday morning.

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